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Employers must start preparing for huge April 2011 tax regime changes

Professional Pensions | 22 Jul 2010 | 09:00

Categories: Legislation

Tags: Hewitt associates

Employers must start preparing for the major pension tax regime changes due to be implemented in April 2011, Hewitt Associates says.

The regime will see a personal annual allowance of between £30,000 and £45,000 – with at least a 40% rate of tax on pension contributions over the threshold.

The consultant urged employers to start planning now despite full legislation – not out until the autumn – still being subject to consultation.

It said businesses have little time to assess the full range of options and identify the most appropriate, tax-efficient means of retirement saving for their employees.

Principal Tony Baily said: “While we welcome the government’s aim to put in place a more simple tax regime for pensions, there is still significant uncertainty just nine months away from the implementation deadline.

“However, in this case employers cannot afford to wait for the full details. Next April will come around very quickly, so companies must take steps now to understand the potential outcomes and how they will need to restructure their benefits to offer best value for their employees.”

Categories: Legislation

Tags: Hewitt associates

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